Canada equities mostly higher after Greek move

SAN FRANCISCO (MarketWatch) � Canadian equities finished mostly higher Monday, taking their cue from broad gains in global markets as investors cheered the approval of austerity measures in Greece needed for the country to receive international aid.

Canada�s benchmark index posted its first gain in three sessions, though it ended well off the session�s high as Greece�s economic outlook remained uncertain.

Toronto�s S&P/TSX Composite Index CA:GSPTSE �rose 9.27 points, or 0.1%, to close at 12,398.69, after trading as high as 12,458.13. Among the benchmark�s sectors, information technology and telecommunications were posting gains.

�Canada is following the global risk-on tone ... in the wake of a successful austerity vote in Greece�s parliament,� said Derek Holt, vice president at Scotia Capital Economics.

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While economic news and indicators have prompted optimism among analysts and other observers, good feeling also ran high a year ago � before things went sour. (Reuters photo: Lee Jae-Won.)

Late Sunday, Greece�s parliament passed tough austerity measures required for the nation to receive a second bailout, raising hopes that the country will be able to avoid defaulting on its debt. Read more on Greece.

Civil unrest and political tensions in Greece, however, fed continued uncertainty over the nation�s economic outlook.

And aside from Greece, there was little for the Canadian market to trade off of, Holt said in emailed comments.

In Toronto, the S&P/TSX Capped Telecommunications Services Index XX:TTTS �rose 0.5% and the S&P/TSX Capped Information Technology Index XX:TTTK �added 0.9%.

Shares of telecommunications carrier BCE Inc. CA:BCE �closed with a gain of 0.2%, while shares of Manitoba Telecom Services Inc. CA:MBT �rallied 5.1%.

Manitoba Telecom on Friday reported an improvement in fourth-quarter earnings compared with a year ago and on Monday, RBC raised the stock�s rating to outperform from sector perform, according to Dow Jones Newswires.

Research In Motion Ltd. CA:RIM �saw its stock fall 3.6%. Meanwhile, shares of SXC Health Solutions Corp. �fell 0.5% after posting gains earlier in the session.

The S&P/TSX Global Gold Index XX:TTGD �fell 0.5% to stand among the worst-performing sectors.

Shares of Barrick Gold Corp. CA:ABX �lost 0.6%. Russia-focused gold producer Highland Gold Mining Ltd. said Monday that Barrick has decided to sell its 20.4% stake in the company. Read more on Barrick.

�Major domestic market-moving factors will arrive only by the end of the week when we expect the last month�s drop in inflation to reverse higher, which may put a bid to [the Canadian dollar] at that point,� Holt said.

Friday�s figures on consumer prices for January �could spice up the trading risks,� he said in a research note. �They are expected to post unchanged prints for headline and core in year-over-year terms, but the [month on month] pace is expected to return into the black following the declines in both measures during December.�

In currencies trading, the Canadian dollar USDCAD �strengthened against its U.S. counterpart, which was buying 99.97 Canadian cents, down from C$1.0012 late Friday.

�The recent strength in U.S. economic data has increased the appetite for the loonie,� said Michael Gregory, senior economist at BMO Capital Markets, in a note.